Issue #1 has 8 different covers. Covers A, B, C, D and E connect to form a large mural of the many of the most prominent characters on the street. There is also a Retailer Cover, a Super Power Cover, and a Mile High Comics variant cover.

Elmo wants to be a super hero like Super Grover but thinks it's not possible because he doesn't have any super powers. Super Grover teaches him how everyday people, like police officers and firefighters and even regular people like Elmo can be heroes just by doing what they can to help people.

Oscar the Grouch and Prairie Dawn are trying to identify the source of terrible smell. Prairie Dawn hates the smell, but Oscar loves it. The smell turns out to be a laundry basket full of wet socks that Telly Monster found at the laundromat. Oscar hangs them up on a line to dry, so he can enjoy the foul odor until the socks are dry.

Cookie Monster imagines what could happen if the Moon was a giant cookie and he was an astronaut, so he could dip the cookie-Moon into the Milky Way galaxy and then eat most of it, leaving just a crescent-shaped remnant when he was finally full.

Bert wants to take a nap, but Ernie is busy imagining things and places. Every time Bert starts a sentence, Ernie finishes it with a comment about a person or a place, and suddenly both Bert and Ernie are wizards, and cavemen, and at the South Pole, and pirates on a desert island, and janitors. Finally Bert says he just wants to take a nap, and Ernie says OK, and then Ernie tells Bert to be quiet because he's trying to sleep.